Entrepreneurial and socio-economic factors of the economic performance of pineapple farms in Allada, Tori-Bossito and Zè, Benin

Abstract

Numerous systemic entrepreneurial innovations have been developed in the agricultural sector to enable producers to better manage climate risks and improve their livelihoods. However, few studies have thoroughly examined their impact on the economic performance of pineapple farms. The objective of this study is to determine the socio-economic factors and entrepreneurial skills that influence the economic performance (net margin, average net labor productivity, internal rate of return, and benefit-cost ratio) of pineapple farms in the communes of Allada, Tori-Bossito, and Zè. Data were collected through individual interviews. For the data analysis, this study builds upon previous research that characterized the farms and grouped them into three categories based on their socio-demographic and economic characteristics using Principal Component Analysis (PCA). Descriptive statistics (relative frequency, mean, standard deviation), a Sankey diagram, and multiple regression analysis using 262 observations were then used for the data analysis. The analysis of entrepreneurial capabilities revealed that, with an average total score of 10.23, innovative producers (group 2) stand out as the most entrepreneurial (innovation, cooperation, technical skills, risk-taking, and information seeking). Next come experienced family farmers (group 1) with an average total score of 9.55, followed by female farmers as the least entrepreneurial group (5.97). Group 2 also distinguishes itself in terms of performance with 361,513.4 FCFA/ha (NM), 2,420.65 FCFA/ha (NPL), 358% (IRR), and 4.58 (BCR). Furthermore, farm size, group membership, and age were identified as the primary determining factors (p < 0.1%). The secondary factors identified (p < 5%)—gender, access to agricultural credit, contact with support organizations, experience, type of pineapple variety, use of organic pesticides, and skills in innovation and collaboration—are key determinants of the economic performance of pineapple producers. These findings provide guidance for improving the economic performance of pineapple producers by strengthening their entrepreneurial skills, while taking these identified factors into account. Based on these results, it is clear that strengthening the entrepreneurial skills of producers, promoting collaboration, and facilitating access to credit and inputs are essential steps.

Keywords: Pineapple, innovation, entrepreneurial skills, economic performance, factors, Benin.

Classification JEL : Q1

Paper type :  Empirical Research